CSN Houston owes $27 million each to Astros, Rockets, court records show

The Astros and Rockets each claim they are owed more than $27 million in unpaid rights fees by Comcast SportsNet Houston, according to documents filed Monday in the network’s Chapter 11 bankruptcy case.

The teams top a list of the 25 largest unsecured claims against the network, totaling about $60 million, submitted in advance of a hearing today before U.S. Bankruptcy Judge Marvin Isgur. Isgur is overseeing the Chapter 11 case filed against Houston Regional Sports Network, the parent company of the Astros-Rockets-Comcast partnership.

Today’s hearing will be the first of several in which attorneys with Haynes and Boone, the Dallas and Houston law firm hired to represent the network, will present routine business requests to the judge to keep the company in business while it reorganizes.

The Astros, who own 46 percent of the partnership, and Rockets, who own 31 percent, are by far the largest unsecured creditors. The Astros, who were not paid their rights fees for the final three months of the 2013 season, are owed $27,898,563, and the Rockets, who have not been paid this season, are owed $27,683,693.

NBA Media Ventures, which is owed $1.5 million, is the third largest creditor. The network also owes $250,000 to the Harris County Appraisal District and Houston Independent School District and six-figure sums to four other entities — Comcast Sports Management Services, NBC Universal Media, Home Team Sports and Game Creek Video.

Haynes and Boone also will ask Isgur today to grant attorneys more time to compile paperwork regarding assets and liabilities and current income and expenditures. It also will ask for permission to pay the network’s 130 employees, which according to court documents have a semi-monthly gross payroll of about $435,000. Employees were paid most recently on Feb. 7, according to attorneys.

Attorneys also will seek authorization to make a series of routine payments, including employees’ expenses and commissions earned prior to the Feb. 7 order placing the network into Chapter 11, and to continue using the company’s business forms and records and its cash management system.

The Astros, who opposed the Chapter 11 designation, have appealed the case to U.S. District Judge Lynn Hughes, who will meet with attorneys Friday.